Skip to main content

Pre - Market Report (31st March 2020)

  1. U.S Markets closed 3% higher Yesterday. Asian Markets are also Mostly in Green.
  2. Trump has cautioned U.S Citizens that if the lockdown rules are not being followed Strictly then in coming 2 weeks the deaths in U.S could surge to more than a lakh.
  3. Lockdown has been extended to 30th April in some parts of U.S .
  4. Indian Institute of Medical Research Yesterday in their Press Conference mentioned that they have not obtained any Proofs of Community Transmission yet ( Stage 3) .
  5. It would be a Tremendous job if we Eradicate the spread of Corona Virus at Stage 2 itself.
  6. Indian Government also Clarified Yesterday that they are not planning to Extend the lockdown beyond 21 day period.
  7. There is not a lot of Incremental Negative news related to Corona Virus all over the World except in U.S
  8. Cases in U.S have surged to 1.4 lakh.
  9. Observing Yesterdays Market I can say that we are in the last round of selling now.
  10. In First round of selling all the low Quality stocks fall by 60-70% but Bluechip Stocks fall by 8-10% this was Witnessed in the Initial Week of March.
  11. In the Second round of selling Everything falls & in the last round of selling Bluechip Stocks fall by 30-40%.
  12. NBFC Stocks have taken a big hit Yesterday. Stocks like Bajaj Finance & HDFC ltd were down more than 10% each .
  13. SGX Nifty is up by 2% in the Pre - Open .
  14. India VIX has been cooling off from it's record high levels of 82-85 range and now it's near 71-72.
  15. This shows that Panic has been reducing in our Markets from last week.
  16. As Tomorrow is the Weekly Expiry & Premiums are quite high on both sides ( CE & PE) . Option Buyers should exercise a lot of Caution while buying Weekly Options.
  17. Yesterday, even when Markets fell Put Options were not rising proportionately to the Market fall. This was because there were very low Volumes being Traded in the Markets & sentiment is not excessively bearish now as it was before.
  18. Futures continue to trade at a Discount on both Nifty & Bank Nifty.
  19. Currently I am not expecting large moves in the Market as we are in a Consolidating phase.
  20. Yesterday the Mid cap & small cap index were down 5% each. So Broader markets were much weaker when compared to Index.
  21. Unless there is any more Incremental Negative news I do not expect Nifty to breach 7500.
  22. As Mentioned Yesterday Bank Nifty will continue to Underperform & all types of rallies should be sold into. HDFC Bank leading the Underperformance and was down 8% Yesterday.
  23. Nifty is likely to remain Rangebound today in the range of 8000-8700 & exploring trading Opportunities at the Boundaries is Advisable.
  24. Sold 7400 PE & 9500 CE Yesterday on Nifty. ( Weekly Expiry).
  25. Sold 16000 PE & 23000 CE on Bank Nifty Yesterday.(Weekly Expiry).
  26. Explore Shorting Opportunities in Quality Bluechip which have not Participated in the Current Market fall. Returns are more Favourable on this front.

Comments

Popular posts from this blog

Bull Call Spread Options Strategy ( With Practical Example)

I Strongly believe , to be Successful in Stock Markets you Require two things : 1) Edge 2) Hedge Edge means having your own Trading System , following your own consensus & Conviction. Hedge is like an Insurance Policy , it will protect you from losing big and also maximise your earning potential over time without Destruction of your Capital. I will be Sharing one of the Hedging Strategy here. Example : Nifty on Friday (5th June) has closed around 10150. You are Bullish for this Weekly Expiry and what you to do is buy a Call Option of 10200 which is Trading around ₹120. Buying or selling naked Options involves high risk as its equal to betting. If you win you win Big or else you lose Everything. So buying naked Options isnt my Cup of Tea. What will I do in this Scenario? I would buy a 10200 CE (11th June Expiry ) at ₹120 and would sell a 10300 CE (11th June Expiry) at ₹80 to manage my risk. Now there are 3 Situations which can happen : 1) Nifty continues to rise: The 102

Pre - Budget Analysis (1st Feb 2022)

U.S Markets closed higher yesterday. Most importantly , S&P 500 VIX crashed 10%. There was huge Volatility in global markets due to Fed event. Markets remain volatile only when they have topped out or have bottomed out. Right now I feel we have bottomed out at 16850. Asian markets are slightly lower now. Dow futures are lower. SGX Nifty is at 17500. Finally , the most awaited day has come. Budget 2022 is going to be presented today. Expectations are of a good and stable budget. Reasons are the Elections coming up and LIC IPO in March. Govt very well knows if LIC IPO has to go through , Market sentiment has to be good. Without good market spending it would be very difficult for IPO to go through. Market had already fallen a lot before the budget. Although we have rallied in last 2 days but still we have some upside left. Though I feel it's not favourable to chase today's gap up. Today's gap up is a good opportunity to book profits those who carried longs. Bud

Pre - Market Analysis (17th Feb 2022)

U.S Markets closed flat yesterday. Right now Dow futures are slightly lower. Asian markets are slightly higher. SGX Nifty is near 17380. Suggesting a flat start for the day. Yesterday was a heavy Volatile session. Markets have moved all over the place yesterday. At one point of time Nifty rallied and at one point of time we were ready to cross 17500. Then news of Russia came that Russia has not fully taken back their military troops. This led to a drastic fall in the last 2 hours. Nifty crashed all the way to 17300. India VIX came to positive. U.S Markets at one point of time were down quite significantly yesterday. But later during the day they have recovered most of their losses. Most importantly , U.S VIX fell 5% yesterday. Here as well we can hope markets to stabilize and VIX to collapse. Premiums are quite attractive considering only 6.days left for expiry  1000 points away put options are also trading at 20-25 rs premium. These put option buyers you know are crazy peo